How profitable is Dubai real estate investment?
Dubai’s real estate market has attracted much attentions in recent years. many real estate agents and companies in Dubai advertise real estate properties offline and online. Also Dubai’s government has created many opportunities and incentives regarding foreigners’ housing and property investment in Dubai. All these have created questions such as “Is real estate investment profitable in Dubai?”, “Is it worth to buy property in Dubai?”, “Is Dubai’s real estate good for investment?”, “How profitable is Dubai’s real estate?”, and so many other similar questions that investors and property buyers ask themselves.
In this article, we tend to elaborate on Dubai’s real estate possible profits, potential ROIs and other related topics.
Why invest in real estate? Why invest in Dubai’s real estate?
Real estate market is one of the top choices by investors who would like to experience stable and high increase of ROI while stay away from potential investment risks.
Dubai’s real estate market have proved to be one of most attractive markets to absorb investors’ cash flow while creating high return of investment and providing a stable and safe investment for investors.
What are the profits of investing in Dubai’s real estate?
Properties in Dubai offer high rental income
Minimum rental income in Dubai for independent studios is expected to be AED 2.5k and maximum rental income is related to luxurious 4-5bed villas with monthly rent of over AED 70k.
Suppose you buy a studio in Palm Jumeirah for AED 2M, and you rent it out for AED 150k yearly. what will happen? The answer is, you make profit on ROI, you can return the AED 2M in less than 10 years and also you make high rental income, more than AED 200k because of year-by-year rental fee increases.
Properties in Dubai offer high ROI
Another appreciation about Dubai real estate investment is its high ROI compared to other cosmopolitan cities.
In Dubai, based on the location of your property, you can expect minimum 5% and maximum 9% return of investment on yearly base.
Going back to our previous example, if you buy a studio flat in Palm Jumeirah worth AED 2M, after 10 years your property will potentially worth AED 4M. If you also rent out your property monthly for AED 200k, in 10 years you will earn another AED 2M as rental income.
Dubai is a tax-free city
Why investing, doing business, renting out a property, making money is profitable in Dubai because residents and non-residents also citizens of Dubai don’t have to pay tax for their income, wealth, etc. Dubai is a tax-free city where if you buy or sell a property and rent it out, you are not required to pay property tax.
